Good news – rate cuts coming now, plus more coming later

CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 15 JAN 2014:

Here’s some great news for once – car insurance rates are lower than they have been in a while says new research, and more savings are on the horizon!

First up is new research released this week declaring that Brits that switch car insurance companies are capitalising on some serious savings right now. In fact, the average amount saved by switching to a different motor car insurance provider has risen to a quite respectable £137 – not a bad bit of cash at all!

The reasons behind such a dramatic drop in prices can be traced to plummeting premiums due to new crackdowns on fraud, which habitually drives up the cost for honest drivers by altogether too much. Of course, it doesn’t hurt that most insurers will hold back their best deals for new customers whilst throwing away any goodwill they might have earned with older customers, but that’s neither here nor there – what’s important is that you can access this fantastic savings by shopping around for cover instead of simply automatically renewing your existing policy.

So that’s the immediate good news, but as I promised there’s more on the horizon: a new Government initiative to make driver licence details available online for insurers is estimated to bring down costs for consumers as well. How does this work? Well, since insurance companies can’t currently check if a licence holder has a few too many points at the time of an application, they have no choice but to raise rates across the board to counteract any shifty motorists who decide not to disclose that information to the insurer in return for a less expensive quote.

So once this new system goes into effect – slated for 2015 – there won’t be any need to charge everyone a bit extra to take into account these duplicitous motorists who think they’re trying to pull a fast one. Instead they’ll be quoted prices that reflect their motoring record whilst safe and responsible drivers will be likely given less expensive cover as a result. It’s a win/win situation as far as I’m concerned, and to be brutally honest with you I simply can’t wait until it goes into effect. I mean if it leads to even less expensive car cover, I’m all for it – and I’m sure the majority of British motorists would agree with me!

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